Tesla has electrocuted shorts and now provided a near-death experience to all legacy automakers. The message is crystal clear: change or die all together with the ICE Age. All automakers are rushing to build up "the next Tesla killer", but nobody can really compete or come even close to the technology developed by Elon Musk and his very talented team at Tesla.
Tesla Battery Day on September 22, 2020, promises announcement of a new breakthrough battery technology which can become "a million-mile battery" that can bring the cost parity with ICE cars. We are moving in the fast lane towards the end of the ICE Age. Fisker is going public with his new electric car after $50 million dollars raise and reverse takeover which expected to bring $1 billion dollars to start production. Rivian, backed by Amazon and Ford, raised $2.5 billion dollars. One by one electric cars makers are launching their stocks "to the moon", sometimes even without any electric cars being in production yet.
People are ready for The Switch, millions are switching from cancer hazard polluting "Clean DIEsel" and "Not so dirty Gas" cars to EVs. Mr Market will separate, as always, flies from hamburgers and a lot of people on Robinhood from their money, but do not miss the real tectonic shift. The World Just Before The Internet. We are going electric. A few megatrends are colliding and will produce real fireworks for the strategic commodities.
The Global Village is finished, globalisation is over. Painful reality check, after this wave of the pandemic will be closer to being controlled, will reveal that a lot of things will never be the same. This Switch will require new secure supply lines for strategic metals for this Energy Transition: Copper and Lithium. Dr Copper has been already celebrating electrification and the coming mass market for EVs by driving up the hill in his Tesla after reading all headlines about infrastructure stimulus.
Master Lithium is still going through its teenager hangover after too much parting was done too soon. Change of mood is typical for all advanced chemistry products. A lot of speculative capital which was before allocated to junior mining space went up in smoke quite literally.
The noise of printing presses is still louder now than the heavy machinery buzz. The coming QE Tsunami is lifting the superyachts first and cargo ships will be the next. The smart money is getting into the real control step by step.
$12 Trillion industries of Energy and Transportation will depend on $3 billion Lithium market more and more. At the moment the Lithium market seems to be totally separated from all excitement and electricity in the air intoxicating the happy Robinhood crowd which is chasing bankrupt ideas and insolvent companies. "Opaque Lithium Kingdom" is still under consolidation. Strongest companies are getting stronger and picking up pieces of all other companies and the best projects they can find on their terms.
All weak players will be wiped out. Ganfeng Lithium is marching on building their own global Lithium raw material resources empire. Ganfeng's 100% ownership of Mariana Lithium is now closer with "Proposed budget 2020: US $25M" when the other JV partner "has decided to temporarily cease to make contributions to the Mariana Joint Venture" again.
Now you can better appreciate the real magnitude of Mariana Lithium Project after the increase in Lithium resources of more than 250%. I am very pleased to see that this new proposed very significant budget will be moving the project into the next stage of the development. In their 2019 Annual Report, Ganfeng Lithium published: "The feasibility study on Mariana Lithium was completed in 2019, and environmental assessment and construction of the project are planned to be conducted".
TNR Gold is plugged into Tesla Energy rEVolution with our Royalty Holding on Mariana Lithium Project. We do not have to contribute any capital for the development of Mariana and our NSR Royalty does not depend on the size of ILC's potentially further diluted ownership in the Mariana Lithium Project. Below you can find more information for your own research on this generational investment opportunity:
"Super-smart" banksters can understand even Mandarin as long as it is about "getting rich quick dirty ways to make money". But history will be the judge, as always, in this case as well after all legal lyrics are written and all guitar solos are recorded. The Rock n Roll time is here, Lithium Royalty payday is coming."
TNR Gold Royalty Holding On Mariana Lithium Project Operated By Ganfeng: "Tesla, Terafactories And Lithium - The Race To Secure The Supply Chain".
We have been discussing here for quite a while the ongoing Tesla Energy rEVolution and exponential growth of sales for electric cars. The secure supply lines for this rEVolution are starting with the production of Lithium raw materials by the Lithium mining industry. Even before the CoronaVirus pandemic, Lithium industry was starving for capital available for its development.
Now we have to make an enormous jump from just over 300,000 T of LCE produced in the last year to the required over 1 million T of LCE production annually by 2026. Even some major Lithium companies, like Tanqi Lithium from China, are struggling to deal with debt.
Others, like Orocobre, have been battling technical problems ramping up production of battery-grade Lithium for years and now are facing even more trouble with the falling prices for its products. Junior miners are fighting for survival. Not everybody will be able to cross this desert, only the strongest Lithium companies will make it. And the so much needed capital will not be the only obstacle in order to build the secure supply chains of this strategic commodity. Lithium industry is riddled with technical problems and other challenges.
Today you can have another perspective on the ongoing trends in the Lithium industry from this YouTube video produced by "EV Stock Channel". Howard Klein is diving deep into the lithium market and spelling out the internal drivers and dynamics of the Lithium supply chains. Digging through a lot of technical details you can start to appreciate the challenges all major players are facing now in order to meet the exponentially growing Lithium demand. Howard is talking about Lithium demand growing to 2 million T of LCE annual production by 2030.
It means that we have to accelerate the output from the recent level of production by almost 7 times in a short 9 years. Typical Lithium mine can easily take 5-7 years just to develop it if you have resources and capital available.
Listening to all the technical problems related to Lithium industry - starting with available capital and continued with numerous technical challenges which are unique to every project - you can better understand the leading role of the companies like giant Ganfeng Lithium from China.
Ganfeng Lithium is one of the major "Top Lithium 5" in the world who has secured capital, developed technology and is building its own resource base all over the world to meet this exponential Lithium demand. As a testament to the leading position in the market, they have already secured Lithium supply deals with Tesla, Volkswagen and BMW.
It looks like Ganfeng Lithium even managed to shake of the CoronaVirus fever and resumed its uptrend already as well. From the very early days, Ganfeng Lithium was taking strategic steps in order to build up its own Lithium raw materials base.
We started working with Ganfeng Lithium in 2009 at TNR Gold. Today, after many years of development and many dozens of millions of dollars invested in Mariana Lithium we are holding NSR Royalty on this project under Ganfeng Lithium management.
The Green Energy Metals Royalty and Gold Company is plugged into the Tesla Energy rEVolution with our unique business model. We do not have to contribute any capital to the development of this project. Analysts, like Dr Ryan D Long, are already applying some of their valuations to our Royalty Holdings.
Now the world is waking up to the realities of the post-pandemic economy and cheap Lithium batteries change everything. Electric cars are already cheaper to own than comparable ICE models. The ICE Age Is Over. Electric cars are better and will be cheaper to buy as well very soon. We have The World Just Before The Internet - we are entering the mass market for electric cars. This kind of unique investment opportunities comes once a generation.
I was very pleased to see that after the announcement of the increase in Lithium resources of more than 250% announced in February Ganfeng Lithium has published in their 2019 annual report: "The feasibility study on Mariana Lithium was completed in 2019, and environmental assessment and construction of the project are planned to be conducted". Below you can find more information about GEM Royalty TNR Gold for your own research.
Lithium Will Power Us For The Next 50 Years And Then Robots: Kirill Klip GEM Royalty TNR Gold Lithium Presentation May 2020.
"Kirill Klip, Executive Chairman of the Company commented, “We are very pleased to see this more than 250% increase in measured and indicated resources from the 2017 resource estimate at Mariana and that Ganfeng Lithium is advancing this project in Argentina towards further updated PEA and pre-feasibility studies. The Mariana Project preliminary economic assessment (“PEA”), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana and our NSR Royalty does not depend on the size of ILC’s potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is an important part of TNR Gold’s portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”
Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions.
Do Your Own Research.
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